Financial Survey: Rent the Runway (RENT) & Its Rivals

Rent the Runway (NASDAQ:RENT) is one of 285 public companies in the “Specialty Retail” industry, but how does it weigh in compared to its rivals? We will compare Rent the Runway to related businesses based on the strength of its earnings, valuation, institutional ownership, dividends, profitability, risk and analyst recommendations.

Profitability

This table compares Rent the Runway and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rent the Runway	11.80%	N/A	-21.89%
Rent the Runway Competitors	-3.67%	-14.10%	3.17%

Insider and Institutional Ownership

73.1% of Rent the Runway shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 0.4% of Rent the Runway shares are owned by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Rent the Runway has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Rent the Runway’s rivals have a beta of 1.66, meaning that their average share price is 66% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Rent the Runway and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rent the Runway	1	0	0	0	1.00
Rent the Runway Competitors	3658	15545	21583	577	2.46

As a group, “Specialty Retail” companies have a potential upside of 9.05%. Given Rent the Runway’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Rent the Runway has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Rent the Runway and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Rent the Runway	$329.80 million	$22.60 million	0.20
Rent the Runway Competitors	$7.10 billion	$386.47 million	39.44

Rent the Runway’s rivals have higher revenue and earnings than Rent the Runway. Rent the Runway is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Rent the Runway rivals beat Rent the Runway on 10 of the 13 factors compared.

About Rent the Runway

Rent the Runway, Inc. operates shared designer closet in the United States. The company offers evening wear and accessories, ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear under subscription, rental, and resale offering. It also engages in the software development and support activities. Rent the Runway, Inc. was incorporated in 2009 and is headquartered in Brooklyn, New York.